Revenue gap trends
Revenue gap detail: which streams drive it
This chart shows the difference in revenue generation between Scotland and the UK average by revenue category over time.
The net shortfall in revenue per head is a function of lower revenue generation mostly relating to Scotland's lower taxable economic base (income tax, NIC, CGT, IHT, corporation tax) and the impact of council tax freezes in Scotland, only partially offset by higher capital consumption accounting adjustments, the gross operating surplus of Scottish Water, survey based estimates of VAT, tobacco and alcohol duties paid per head in Scotland and higher business rates. The following insights delve into each of these areas in more detail.